Author: Developers Think

David Xuereb, President of the Chamber of Commerce, Enterprise and Industry, has called on Government to further assist all businesses with financial support packages, highlighting that the risk of more job losses remains.

In an interview with Timesofmalta.com, Perit Xuereb said businesses that have helped the country’s economy through the taxes they paid over the years deserve to receive Government assistance, also to help them retain their staff.

“When companies profit, as they did, such profits are typically reinvested back into the business to grow that business,” said the Chamber President. “This is the reason why the Maltese economy has grown so fast, thanks to tax paid as a result of success but also a result of reinvestment of profit into the business. If profits were retained by businesses, then the economy would stagnate.”

Perit Xuereb added that protecting businesses and employment has been the primary concern of the Chamber, and that all its proposals to Government were about protecting jobs and keeping redundancies to a minimum, rather than about retaining or protecting turnover.

While the financial assistance measures rolled out over the last weeks have helped businesses, Perit Xuereb stresses that “the oxygen they were supplied with is running out and further measures are required.”

“The help was great but not enough. We expect more measures to benefit more and more businesses, which were left out,” such as real estate, wines and spirits, and many more.

The Chamber President added that timeliness for banks to provide liquidity is essential, as most companies could only stay afloat for a few weeks with the liquidity they have at hand. “Certainly, the economic mood and the ability to keep afloat start to become more difficult,” he said.

“People were focusing on trying to stretch themselves to retain employees or to try and reinvent themselves. However, the biggest effort over the last couple of weeks had been focused on the need to preserve business.”

 

With food waste becoming a hot topic globally, on a European level and locally too, the Malta Business Bureau (MBB) is leading discussions through a series of seminars on food waste reduction, expanding these sessions to an international audience.

Organised as part of the Business Against Food Waste Campaign led by the MBB, in partnership with HSBC Malta and ITS, six seminars and two webinars have been organised so far, hosting 250 participants to discuss the issue of food waste at work and at home.

With food waste becoming a major concern – in Europe, it is estimated that 20 percent of the food produced is thrown away, while Maltese figures stand at 22 to 25 per cent – the series attracted participants from several sectors, including manufacturing, hospitality, services, retail, the public sector, post-secondary schools, and the general public.

Another set of webinars will be held on 28th and 29th May, and will feature an expert line-up of speakers, each bringing a different perspective to the food waste challenge which has several implications, including significant environmental issues, economic losses, and ethical concerns surrounding throwing away food.

Reflecting on the progress achieved through the campaign, MBB Project Manager Gabriel Cassar said “reducing food waste is one area which holds a lot of potential and which will result in significant environmental and economic benefits. The strong interest seen so far shows that we are on the right track. Naturally, the current situation has forced us to rethink our strategy. However, we are confident that online training is the way forward and will allow us to reach even more people, while reducing travel and our carbon footprint.”

To register for the final set of webinars in May, contact Glenn Bugeja, HSBC Manager for Corporate Sustainability, on glenn.bugeja@hsbc.com.

For information on the Business Against Food Waste Campaign, visit www.mbb.org.mt/business-against-food-waste.

 

 

The European Commission, today, announced a temporary framework on state aid rules which is now being consulted with EU member states. Among others these would allow member states to introduce measures such as setting up schemes of direct grants or tax advantages of up to €500,000 to a company, subsidised state guarantees on bank loans and public and private loans with subsidised interest rates.

The framework also allows for airlines suffering damages due to the COVID-19 outbreak to receive compensation even if they have received rescue aid in the last ten years. In this case the “one time last time” principle does not apply.

The Malta Business Bureau welcomed the European Commission initiative which acknowledges the state aid flexibilities required at this desperate time to save strategic companies such as airlines as well as thousands of small and medium enterprises facing unprecedented challenges to keep afloat.

MBB President Simon De Cesare stated, “Time is of the essence for these measures to be actioned immediately. The economic slump has come upon companies so swiftly that many businesses cannot cope, particularly as there is no end to this crisis yet in sight.”

Mr De Cesare added, “Our responsibility is to keep our customers and our employees safe, but also to safeguard their jobs and livelihoods. Companies on the front line like Tourism and tourism related sectors, are unable to do so without the necessary support nationally and at EU level. Companies are already having to deal with the huge burden of no income coupled with wages of employees who are unable able to work. Liquidity and access to finance are also essential in order to stabilise operations and resist the economic pain in the medium to long term. For this, we urge EU member states, particularly the Maltese Government to action these measures the earliest possible and roll them out widely to all affected companies. Small measures will not have the stabilizing effect the country needs right now.”

“I am confident that together we will win this fight. But we need the required support to keep casualties to a minimum. Only then could we start rebuilding and come out stronger,” Mr. De Cesare concluded.

Lead partner Latvian Information and Communication Technology Association (LITKA) and Tech.mt have organised a ‘Women4IT Validation Workshop.’

Tech.mt is a Public-Private-Partnership between the Malta Chamber of Commerce, Enterprise and Industry, and the Government of Malta, aiming to promote the country’s national strategy on innovative technology.

The project will focus on building young women’s digital skills capacity in eight professional job profiles that address the specific skills shortages experienced by employers, Tech.mt said on its social media page.

“Combating youth unemployment and addressing the needs of young people that are not in employment, education or training is one of the highest priorities on the European agenda,” Tech.mt said.

The piloting of the new Women4IT platform will start in October 2020.

Find out more: https://women4it.eu/.

Tech.mt, an agency created by the Government and the Malta Chamber of Commerce, participated in Junior College’s Wellbeing and Sports Festival to promote the “importance of Digital Wellbeing”.

The agency is tasked with promoting Malta’s strategy on Innovative Technology.

“Technology has become an integral component of daily life, however, going online can also pose challenges for young people. Our digital wellbeing can be influenced by the choices we make online, the content we see and the interactions we have with others,” a spokesperson said.

“We believe technology should play a helpful, useful role in people’s lives and thus we are committed to ensure that youths understand the fundamentals of being safe and responsible digital citizens.”

The General Affairs Council of the European Union has authorised the European Commission to start negotiations for a new partnership with the UK, talks the Malta Business Bureau expects to be difficult, especially because of time pressures.

“Both the EU and the UK should, therefore, keep an open mind on the possibility of making use of the one-time extension that needs to be triggered by mid-2020 in order to pursue further discussions post the deadline,” Mr Tanti said.

He pointed out that it is crucial for Malta that the future EU-UK deal ensures that travel between the two blocs continues to take place unhindered, particularly for the aviation sector and the movement of people for short-term travel. Considering the big volume of trade in goods, it is important to maintain tariff and quota free trade, while non-tariff barriers are kept strictly to a minimum, he added.

Mr Tanti added: “From our sources in Brussels, we increasingly hear that, due to the constraints of time, a deal could primarily focus on the movement of goods. However, the Maltese economy also depends strongly on the provision of services, and, therefore, we urge for a parallel ambitious agreement in the trade of services that avoids divergence in rules as much as possible, and with continuous regulatory cooperation in the coming years to avoid barriers to trade in this area.”

The Malta Chamber met with Silvio Schembri, Minister for the Economy, Investment, and Small Business, last week to discuss matters relating to Malta’s reputation and the impact this was having on investment and the economy.

The delegation, which was led by Malta Chamber President Perit David Xuereb, spoke about issues of competitiveness in general, but mainly in cost sensitive sectors such as manufacturing. In relation to the same topic, the Chamber underlined its preoccupation on energy costs and incentives, industrial relations as well as the ever-increasing challenges brought about by skills shortages.

The Chamber also spoke about the recent campaign it led in collaboration with Malta enterprise titled ‘Make it’ which cast a light on the exciting careers in the Manufacturing Industry. The campaign which ran during the first quarter of 2019 registered extremely encouraging results, as it was addressed at teens and young adults who would be at a point in their lives when they would be choosing their career paths.

The meeting also discussed the success of the public private partnership the Chamber entered with Government Trade Malta, as well as the Chamber’s vast number of initiatives in the important field of Internationalisation.

Mr Xuereb also told Minister Schembri how the Chamber was launching its new Economic Vision for the country on Wednesday.

Other topics that were discussed included the importance of the 6/7ths tax system for FDIs, the Chamber’s Family Business Initiatives and the Chamber position regarding on Air Malta.